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Glossary of terms

Discussion in 'General Affiliate Marketing Forum' started by PeterOBN, May 11, 2012.

  1. PeterOBN

    PeterOBN Affiliate Manager Affiliate Manager affiliate

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    I noticed we still don't have a thread like that, so here goes...
    K, please make that a Sticky to help the new arrivals, thanks!

    Affiliate Marketing: A revenue sharing arrangement between online merchants and distributors (affiliates) in which the affiliate earns a commission for producing a sale, lead or click for the merchant’s site.

    Affiliate Network: A third party providing services to affiliate merchants and affiliates, including tracking technology, reporting tools, and payment processing.

    Affiliate: A web site owner that promotes a merchant’s products and/or services, earns a commission for referring clicks, leads, or sales.

    Advertiser (Merchant) - Business owner who works with affiliates to generate business.

    Above the fold - The visible portion of a page when it is first loaded.

    Affiliate Agreement: Terms that govern the relationship between a merchant and an affiliate.

    CPA - Cost per action - Advertising model that allows advertisers/merchants to pay affiliates per action, e.g. purchase, opt in, form submission.

    CPC - Cost per click

    CPM - Cost per thousand impressions

    PPD - Pay Per Download

    Commission: Also known as a bounty or referral fee, the income an affiliate is paid for generating a sale, lead or click-through to a merchant’s web site.

    Conversion: When one of your visitors makes a purchase on the merchant’s site… i.e. converts from ‘visitor’ to ‘buyer’.

    Cloaking: Hiding of page content or affiliate linking code.

    Click-Through: When a user clicks on a link and arrives at a Web site.

    Click-Through Ratio (CTR): Percentage of visitors who clickthrough to a merchant’s Web site.

    Conversion Rate (CR): The percentage of visits to your site that convert to a sale. I.e. If 1 person in every hundred visitors to your site makes a purchase, then your conversion rate is 1:100 or 1 percent.



    Creative: The promotional tools advertisers use to draw in users. Examples are text links, towers, buttons, badges, email copy, pop-ups, etc.

    Banner Ad: Advertising in the form of a graphic image.

    Contextual Link: Placement of affiliate links within related text.

    Email Link: An affiliate link to a merchant site contained in an email newsletter or signature file.

    Impression: An advertising metric that indicates how many times an advertising link is displayed.

    Search Engine Optimization (SEO): The process of choosing keywords and keyword phrases relevant to your site or page on your site, and placing those keywords within pages so that the site ranks well when those keywords are searched upon.

    Text Link: A link not accompanied by a graphical image.

    Tracking URL: A tracking URL is a web site URL with your special affiliate code attached to it, i.e. http://www.some-website.com/?ID. Visitors arriving at the site are tracked back to you through your special code, or ID.

    Unique User: A unique visitor to your Web site. Probably the best indicator of site traffic.

    ROI - Return on Investment (How to calculate ROI: ROI = (Revenue - Cost) / Cost. )

    PPC - Pay Per Click

    EPC - Earning Per Click

    Charge Back - An invalid sale that results in the affiliate's commission being forfeited.

    ROAS - stands for 'Return on Advertising Spending'. This is the amount of revenue generated for every dollar spent on advertising. For instance, a ROAS of $1 means you're generating $1 in sales for every $1 in advertising spend, and a ROAS of $5 means you generate $5 in sales for every $1 in spending.

    Residual Earnings - Programs that pay affiliates not just for the first sale a shopper form their sites makes, but all additional sales made at the merchant's site over the life of the customer.

    Recurring Commissions - The process of rewarding an affiliate on a recurring basis whenever the merchant charges a customer a recurring fee. For example, a web host that charges customers on a monthly basis might reward the affiliate a percentage of each month's payment from the customer.

    Click Fraud - Click fraud, also called pay-per-click fraud, is the practice of artificially generating traffic to advertisers' sites either manually or through the use of automated clicking programs (called hitbots). The advertiser pays for this traffic, which has no potential for generating revenue, however, the scammer receives a percentage of the pay-per-click fees paid by the advertiser.

    Niche - Specific and targeted section of a particular market.
     
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  3. Krauser

    Krauser Affiliate affiliate

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    Thanks! This helps me a lot :)
     
  4. PeterOBN

    PeterOBN Affiliate Manager Affiliate Manager affiliate

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    Anytime :)
    Feel free to add terms you don't know the meaning of - the AMs and the old dogs here will add the descriptions, then I'll add them to the first post to make it really thorough.
     
  5. Shijil Kumar

    Shijil Kumar Affiliate affiliate

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    ROI - Return on Investment

    PPC - Pay Per Click

    EPC - Earning Per Click


    When I was new I didn't know what these even meant. Update the thread with these too. :)
     
  6. PeterOBN

    PeterOBN Affiliate Manager Affiliate Manager affiliate

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    Thanks man, they're added + a few more :)
     
  7. Andy Haskins

    Andy Haskins Affiliate affiliate

    CPA - Cost per action - Advertising model that allows advertisers/merchants to pay affiliates per action, e.g. purchase, opt in, form submission.

    CPC - Cost per click

    CPM - Cost per thousand impressions

    Merchant (Advertiser) - Business owner who works with affiliates to generate business.

    Above the fold - The visible portion of a page when it is first loaded.

    Niche - Specific and targeted section of a particular market.
     
  8. Andy Haskins

    Andy Haskins Affiliate affiliate

    Also for ROI it would be great to add how to work out ROI:

    Return on investment (%) - Method of calculating the efficiency of a campaign. ROI = (Revenue - Cost) / Cost
     
  9. PeterOBN

    PeterOBN Affiliate Manager Affiliate Manager affiliate

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  10. Andy Haskins

    Andy Haskins Affiliate affiliate

    No worries, it's a great post you created and will be a big help to a lot of newbies :)
     
  11. Ryker

    Ryker Affiliate affiliate

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    Very helpful for many I'm sure. Do I have permission to post it on my blog?

    Thanks!
     
  12. K

    K Administrator Administrator affiliate

    If you link back here - of course!
     
  13. K

    K Administrator Administrator affiliate

    Exact Match Domain
     
  14. luipogi

    luipogi Affiliate affiliate

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  15. alexcopeland

    alexcopeland Affiliate affiliate

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    PPD = Pay Per Download
     
  16. K

    K Administrator Administrator affiliate

  17. Marc

    Marc 武士- Spamurai moderator affiliate

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    Maybe the following terms also fit into the list:

    EMD - Exact Match Domain

    SOI - Single Opt In

    DOI - Double opt in

    pva - phone verified account

    angle(s) - different perspectives
     
  18. walker254

    walker254 Affiliate affiliate

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    This post is very helpful for a newbie like me.
    thanks
     
  19. K

    K Administrator Administrator affiliate

    Good, glad it helped!
     

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